D.He is the President of the United States Joe Biden According to locals, it plans to significantly increase taxes for the wealthy to invest in sectors such as education and child care. Among others, those familiar with the plans told Reuters on Thursday that the capital gains tax on citizens with annual incomes of more than $ 1 million would be doubled to 39.6 percent as part of the “American Family Plan.” The Bloomberg News Agency also reported, citing informed circles.
With the existing, additional taxation, the associated tax burden could reach 43.4 percent. Presidential Office Spokesman Jen Saki Declined to comment on the details of the project. It will be delivered next week, he said. Wall Street responded with significant discounts to reports and cryptocurrencies also went down.
Biden’s family plan was previously announced to be worth a trillion dollars. Locals say the Democrats will present their proposal to Congress before the speech, which is expected on Wednesday. Biden has already submitted a $ 2.3 trillion infrastructure plan that Congress is currently considering. Republicans reject it. It was hoped that they too would be able to appeal against the family plan in its original form.
“This is a long way from project to implementation”
With only the smallest possible majority for Democrats in the Senate, analysts on Thursday were initially skeptical that Biden’s tax plans would become law in this form. “It’s a long way to go from project to project,” said Charles Lemonites, Valueworks ’portfolio manager. Paul Knolt of Kingsview Investment Management sold a short-term reflex reaction on the U.S. stock market on Thursday. “Every time we talk about higher taxes or capital gains, everyone gets excited,” he said. Then they sell first and then think about it. The question is where investors want to put their money. Many will end up buying shares again.
U.S. citizens currently pay at least 20 percent capital gains tax. An additional 3.8 percent tax is levied on annual incomes over $ 200,000, and it flows to a section of the presidency Barack Obama Obama also introduced the Care Health Plan. According to locals, this tax should be. In the United States, federal and state taxes are separate. This means the tax will be higher depending on the state.
Bitcoin falls below $ 50,000
The Dow Jones Industrial Average fell 0.9 percent to close at 33,815 points on Thursday after the plans were announced. Technology-savvy Nasdaq was down 0.9 percent at 13,818 points, while the broader S&P 500 closed at 4,134 points. At the same time, cryptocurrencies were sold. For the first time since March 8, Bitcoin fell below $ 50,000 on Friday.
The price on the Bitcoin trading platform in early trade was slightly below $ 48,000, but has recently recovered somewhat. At a good $ 49,800, Bitcoin was four percent lower than its level on Thursday evening. The number two cyber currency, Ethereum, lost a good 12 percent to $ 2,115. Stockbrokers fear that Piton’s plan will reduce the attractiveness of cryptocurrencies as an investment. Some traders responded to the news with aggressive sales, said Avi Felman, head trader at cryptocurrency expert Blacktower. Chris Weston, chief analyst at brokerage house Pepperstone, said the price losses were “unresponsive to previous price gains, especially with respect to the stock market.
Taxation of investment income may also play a role in the federal election campaign in Germany. The coalition agreement between the Union and the Social Democrats agreed to repeal the withholding tax. This means that capital income in Germany will again be subject to income tax, which means higher taxes, especially for high-income earners. Greens are calling for the flat tax to be abolished. It was introduced in 2009 at a flat rate of 25 per cent on interest, dividends and profit from the sale of shares.